Multiple Choice
Which of the following identifies the optimal usage of inputs by a profit-maximizing firm?
A) Marginal product of labor = marginal product of capital = 0
B) Marginal product of labor/price of labor = marginal product of capital/price of capital
C) Marginal revenue product of labor = marginal revenue product of capital
D) Marginal cost of labor = marginal cost of capital
E) Marginal product of labor/marginal product of capital = price of capital/price of labor
Correct Answer:
Verified
Correct Answer:
Verified
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